Justice Inyang Ekwo of the Federal High Court in Abuja has directed the Minister of Interior, Olubunmi Tunji-Ojo, and the Attorney-General of the Federation (AGF), Lateef Fagbemi, to explain why the implementation of the proposed Expatriates Taxation Regime should not be halted.
The order follows an ex-parte motion filed by a plaintiff, represented by counsel Patrick Peter, seeking to restrain the government from enforcing the Expatriate Employment Levy (EEL). Justice Ekwo ordered the defendants to be served with the motion within three days and set January 16, 2025, for the defendants to respond.
The plaintiff is requesting an interim injunction to prevent the enforcement of the EEL until a substantive motion on notice is resolved. The taxation regime, introduced in February 2024, mandates companies employing expatriates to pay annual levies of $15,000 (₦23 million) for directors and $10,000 (₦16 million) for non-directors.
The plaintiff argued that the EEL, along with its stringent penalties, is an “anti-people policy” that could negatively impact Nigeria’s economic growth. Proposed penalties include:
- Five years’ imprisonment or a ₦1 million fine for inaccurate reporting.
- ₦3 million fines for non-compliance, false information, or failure to renew the levy.
The motion contends that taxation requires collaboration between the executive and legislative branches under the 1999 Constitution and that the executive branch cannot unilaterally impose levies. The plaintiff also pointed out that the current tax framework is already favorable to expatriates compared to the EEL.
In 2024, the Federal Ministry of Interior had suspended the EEL’s implementation to allow for consultations with stakeholders, including the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA).
Justice Ekwo emphasized that the defendants must justify why the court should not grant the plaintiff’s requests during the next hearing.
